Average income of first-time buyers hits new record high

In Dublin and Kildare the average income for first-time buyers is now over €100,000. Picture: Gareth Fuller/PA

The average income of a first-time buyer household has grown to a record high of €82,000 while at the same time their average mortgage drawdown has increased by €20,000 to €270,000, a new report from the Banking and Payments Federation (BPFI) shows.

During the first six months of this year, the average income of first-time buyer households looking to purchase an existing property rose by €4,000 to €75,000 a year compared to the same period in 2022. For those buyers looking at a new build, the average income is now €93,000 — up €7,000.

In Dublin and Kildare, the average income for these buyers is now over €100,000, increasing by about €12,000 and €11,000, respectively.

The average first-time buyer mortgage on existing properties now stands at €258,802, with the average for new properties up €30,000 to €315,000 compared to last year. 

The average age of a first-time buyer is now 35, with only one in five under the age of 30.

According to the BPFI, 57% of first-time buyers' mortgage drawdowns are valued over €250,000, with 56% having an average income of over €80,000. These are the highest proportions for either category given by the BPFI since it started keeping track. 

As the number of people moving home, re-mortgaging, and switching dwindles following successive interest-rate increases from the European Central Bank, first-time buyers continue to dominate the mortgage market.

During the first half of this year there were 11,313 first-time buyer drawdowns, valued at almost €3.2bn, the highest since the first half of 2007. 

In terms of mover-purchasers, the median mortgage rose by less than €4,000 to €290,500 compared to the same period in 2022. Average income for these households also grew by 5.2% to €111,000.